Market Roundup
• US Q1 GDP Advance, 3.2%, 2.0% forecast, 2.2% previous
• US Q1 Core PCE Prices Advance, 1.3%, 1.6% f'cast, 1.8% previous
• US Apr U Mich Sentiment Final, 97.2, 97.0 f'cast, 96.9 previous
• Oil tumbles more than 3% as Trump again urges OPEC to lower prices
• CA Feb Budget Balance, C$, 4.31 bln, -1.54 bln previous
• CA Feb Budget, Year-To-Date, C$, 3.09 bln, -1.21 bln previous
Looking Ahead - Economic Data (GMT)
• No major economic data expected
Looking Ahead - Events, Other Releases (GMT)
• 29 Apr 08:10 BoE Governor Mark Carney speaks at Innovate Finance Global Summit 2019 in London
Currency Summaries
EUR/USD: The euro edged higher against the U.S. dollar on Friday, after an overall strong U.S. first-quarter growth report was overshadowed by soft inflation data. Gross domestic product increased at a 3.2 percent annualized rate in the quarter, the Commerce Department said in its advance GDP report, released on Friday, versus the 2.0 percent estimated by economists. The euro was up 0.21 percent at $1.1154. An index that tracks the dollar versus a basket of six major currencies was down 0.13 at 98.68. Immediate resistance can be seen at 1.1173 (50% retracement level), an upside break can trigger rise towards 1.1207 (61.8% retracement level).On the downside, immediate support is seen at 1.1137 (38.2% retracement level), a break below could take the pair towards 1.1093 (23.6% retracement level).
GBP/USD: The British pound was headed for its biggest weekly drop against dollar in a month on Friday, dragged down by growing concern about stagnant Brexit talks. Another worry for traders is the prospect of a fresh push for Scottish independence. Differences over Brexit have strained relations with the government in London, and Scotland will start preparing for an independence referendum before May 2021, First Minister Nicola Sturgeon said on Wednesday. Sterling edged 0.3 percent higher to $1.2921, its weakest since mid-February. Against the euro, the pound traded flat at 86.3 pence. On a weekly basis, it is set to decline 0.6 percent, its biggest drop in four weeks. Immediate resistance can be seen at 1.2956 (38.2% retracement level), an upside break can trigger rise towards 1.3041 (50% retracement level).On the downside, immediate support is seen at 1.2858 (23.6% retracement level), a break below could take the pair towards 1.2800 (Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday, following data that showed factors driving faster growth in the U.S. economy that are likely to be temporary.U.S. economic growth accelerated in the first quarter, but the burst in growth was driven by trade and the largest accumulation of unsold goods since 2015, factors that are likely to reverse in the coming quarter. The U.S. dollar fell to a session low against a basket of currencies after release of the data, while the price of oil, one of Canada's major exports, retreated from its strongest bull run in at least a year amid efforts to resume Russian oil flows that were interrupted by contamination. At (1934 GMT), the Canadian dollar was trading 0.2% higher at 1.3462 to the greenback, or 74.28 U.S. cents. Immediate resistance can be seen at 1.3470 (50% retracement level), an upside break can trigger rise towards 1.3515 (38.2% retracement level).On the downside, immediate support is seen at 1.3423 (61.8% retracement level), a break below could take the pair towards 1.3400 (Psychological level).
USD/JPY: The U.S. dollar declined against the yen on Friday, snapping a three-day streak of gains, after an overall strong U.S. first-quarter growth report was overshadowed by soft inflation data. Gross domestic product increased at a 3.2 percent annualized rate in the quarter, the Commerce Department said in its advance GDP report, released on Friday, versus the 2.0 percent estimated by economists polled . Recent U.S. data has been supportive of the greenback and reinforced the belief that the United States is on a firmer economic footing than other leading economies. The dollar index , which measures the greenback against six other major currencies, was 0.2% lower at 98.009. The index, which hit a 23-month high earlier in the session, is up 0.7% for the week. Strong resistance can be seen at 111.92 (50% retracement level), an upside break can trigger rise towards 112.36 (38.2% retracement level).On the downside, immediate support is seen at 111.37 (61.8% retracement level), a break below could take the pair towards 110.82(April 10th low).
Equities Recap
European shares finished higher on Friday as some strong earnings and data showing U.S. economic growth in the first-quarter beat expectations helped cut losses from earlier in the session.
The UK's benchmark FTSE 100 closed down by 0.12 percent, FTSEurofirst 300 ended the day up by 0.08 percent, Germany's Dax ended up by 0.32 percent, and France’s CAC finished the up by 0.16 percent.
Wall Street's three major indexes rose slightly on Friday as Intel's weak results put the techology sector under pressure and the energy index tumbled along with the price of oil and mixed first-quarter GDP data gave investors some pause.
Dow Jones closed up by 0.30 percent, S&P 500 ended up 0.46 percent, Nasdaq finished the day up by 0.34 percent.
Treasuries Recap
U.S. Treasury yields fell following Friday's first-quarter growth report as weak inflation data tempered the strong headline figure.
Yields across maturities were lower, with the biggest losses at the short end of the curve.
The two-year yield, a proxy for investor expectations of interest-rate hikes, was last down 3.8 basis points to 2.292%. The benchmark 10-year government note yield was last 2.5 basis points lower at 2.509%
Commodities Recap
Gold jumped to a near two-week high on Friday, as the dollar slipped on tepid U.S. inflation data, outweighing an overall strong first-quarter growth report.
Spot gold gained 0.7 percent to $1,286.41 per ounce as of 2:16 p.m. EDT (1816 GMT), after hitting its highest level since April 16, at $1,288.59. U.S. gold futures settled 0.7 percent higher at $1,288.80 an ounce.
Oil prices fell 3% on Friday after U.S. President Donald Trump again pressured the Organization of the Petroleum Exporting Countries to raise crude production to ease gasoline prices.
Brent crude futures settled at $72.15 a barrel, down $2.20, or 3 percent. West Texas Intermediate crude ended at $63.30 a barrel, down $1.91, or 2.9 percent.
